BofA, MBIA Reach Settlement in Mortgage Dispute
Bank of America agrees to pay MBIA $1.6 billion to settle a dispute over soured mortgage securities issued during the U.S. housing boom.
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MBIA Shares Jump After Fairholme Buys 11.1% Stake
Share in financial services company MBIA are up more than 10% in pre-market trading after Fairholme Capital Management, the investment firm headed by Bruce Berkowitz, disclosed that it had purchased an 11.1% stake in MBIA, the world's largest bond insurer.
Legal Briefing: Will Big Banks Pay Over Misleading Ratings?
MBIA has sued Merrill Lynch because the CDOs on which Merrill bought insurance from MBIA were AAA-rated junk. MBIA says Merrill knew the CDOs didn't deserve the top rating at the time it insured them. If this case succeeds, big banks may find dud ratings very expensive.
